Gadang's Unit To Acquire Indonesian Water Treatment Company

KUALA LUMPUR, July 10 (Bernama) -- Gadang Holdings Bhd's indirect wholly owned subsidiary, Asian Utilities Pte Ltd, plans to acquire 85 percent of Indonesia-based PT Hanarida Tirta Birawa (HTB) for RM13 million cash.HTB has the rights to operate water treatment and supply for a period of 20 years until June 8, 2024 in Sidoarjo, East Java, Gadang said in a filing to Bursa Malaysia today.HTB also owns and operates a water treatment plant at Tawangsari, Sidoarjo, with a capacity of 600 litres per second and which it is currently operating at 500 litres per second, the company said.According to Gadang, the proposed acquisition is part of its plan to expand its treated water supply and concession business in Indonesia.The proposed acquisition will increase Gadang's interests in the treated water supply and concession business in Indonesia, the company said."Barring unforeseen circumstances, the acquisition is expected to contribute positively to the earnings of the Gadang group in the future," it said.